“We admired how Madras Coffee House operated in the city and wanted to build something similar – a coffee shop that was halfway between Madras Coffee House and Cafe Coffee Day,” Jahabar explains. When the couple got together with a few other pals to talk about their company plan, they would often take a break for tea. “We’d take frequent breaks, and they’d always be for tea.” “Why don’t we open a tea shop ourselves?” says Jahabar.
Cutting chai
Chai Kings‘ first location debuted in Kilpauk in October 2016. In December, two more in Mount Road and Anna Nagar and one in T Nagar were added. “We were confident in our ability to make these four outlets profitable, so we took the risk,” he says.
According to Jahabar, the introduction of meal delivery partners such as Swiggy and Zomato boosted their business significantly. “At initially, we made Rs 500 each day, and then it grew to Rs 10,000.” Our cardboard flasks were reasonably priced, and with the help of Swiggy and Zomato, sales began to increase.
Keeping a step ahead of the competition
When Jahabar and Balaji decided to start a tea business, they spent a considerable portion of their day sipping chai from various shops to get a feel for the market. In accordance to other competitors in the market, which is losing 30-35 percent of their revenue, we are doing quite well. Because of our expansion, our profitability is currently slower,” he explains. Their main advantage is the price of their chai, which is Rs 20. “Food accounts for 45 percent of our expenses. Another 20% is set aside for wages, and the remaining 18% is set aside for rent. “As a firm, we’re interested in experimenting with different models and price points in many areas,” he says.
Chai Kings
Chai Kings’ revenue to has been improved, he shares. “When we began, we did not have the kind of revenue we wanted. Now it is between Rs 10 and 12 lakh per store, but earlier it was Rs 6 to 7 lakh. Our online revenue is 40% of our store revenue, and this has tipped the scales.” At present, Chai Kings sells about 25,000 cups of tea per day, with ginger chai taking the top spot. Chai Kings just established their first store in Coimbatore’s Brookefields Mall and will soon open six locations in Hyderabad at the same time. “In terms of tea consumption, Hyderabad is ten times that of Chennai. There are many tea consumers in the area, and the market is diverse. People in Coimbatore, on the other hand, appear to recognize us from Chennai, so we don’t require as much promotion as we do in Hyderabad,” he explains.
This is how the inspiring story of Chai Kings, went on from nothing to everything. To know more about hardware stores, click here.
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